Announcement of NAV and Quarterly Dividend
Summary by AI BETAClose X
19 March 2026
SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC
("SEREIT"/ the "Company" / "Group")
ANNOUNCEMENT OF NAV AND DIVIDEND
Schroder European Real Estate Investment Trust plc, the Company investing in European growth cities and regions, provides a business update and announces its unaudited net asset value ("NAV") as at 31 December 2025, together with its first interim dividend for the year ending 30 September 2026:
· Prior period service charge adjustments of €2.5 million, or 1.9 euro cents per share ("cps") have resulted in an adjusted starting NAV as at 1 October 2025 of €154.2 million, or 117.3 cps
· Underlying adjusted quarterly earnings from operational activities ("EPRA earnings") of €1.8 million before exceptional items for the quarter ended 31 December 2025 (quarter ended 30 September 2025: €1.9 million)
· A first interim dividend of 1.48 cps declared for the quarter, 90% covered by EPRA earnings before exceptional items, reflecting an annualised dividend yield of c. 8.3% based on the 16 March 2026 share price (c. 61.8 pence sterling)
· An IFRS profit of €1.0 million for the quarter ended 31 December 2025
· Unaudited NAV of €153.3 million, or 116.7 euro cents per share ("cps") as at 31 December 2025, reflecting a NAV total return of 0.8%
· The property portfolio was independently valued at €194.0 million (30 September 2025: €194.0 million)
· Portfolio vacancy increased to 7% (as at 16 March 2026) following the departure of Shuurman Beheer B.V. at the Alkmaar industrial property and the tenant's decision not to fulfil its lease obligations due to financial difficulties, as previously announced on 5 March 2026
· Post-period end, income security has improved following newly completed lease re-gears in Stuttgart (5% of portfolio rents), terms agreed in Rumilly (5% of portfolio rents), and a new letting agreed in Paris (reducing asset vacancy from 11% to below 10%)
· The income from the portfolio is considered to be a strong inflation hedge with almost all leases subject to indexation
· Tax disclosure update: No material change since the previous announcement on 5 December 2025. The Group has appealed the French Tax Authority's €14.2 million notice of adjustment (including interest and penalties) and is awaiting a response, and continues to maintain that the amount is not payable. No provision has been recognised, based on professional advice and the Board's assessment that an outflow is not probable. Further updates will be provided as appropriate.
Net Asset Value
The table below provides a breakdown of the movement in NAV during the reporting period:
|
|
€m |
Cps(1) |
|
Brought forward NAV as at 1 October 2025 |
156.7 |
119.2 |
|
Prior period adjustment |
(2.5)(2) |
(1.9) |
|
Adjusted NAV as at 1 October 2025 |
154.2 |
117.3 |
|
Unrealised movement in the valuation of the property portfolio |
0.0 |
0.0 |
|
Capital expenditure |
(0.8) |
(0.6) |
|
EPRA earnings |
1.7 |
1.3 |
|
Non-cash items |
0.1 |
0.1 |
|
Dividend paid |
(1.9) |
(1.4) |
|
NAV as at 31 December 2025 |
153.3 |
116.7 |
(1) Based on 131,407,986 shares.
(2) An adjustment to correct property expenses assigned to vacant spaces which had been incorrectly recorded in the period 2021 to 2024 as recoverable from tenants.
Interim dividend
The Company announces its first interim dividend of 1.48 euro cents per share for the year ending 30 September 2026, which represents an annualised dividend yield of c. 8.3%, based on the 16 March 2026 share price (c. 61.8 pence sterling). The quarterly dividend is 90% covered by EPRA earnings excluding exceptional items for the quarter.
The interim dividend payment will be made on Friday 15 May 2026 to shareholders on the register on the record date of Friday 10 April 2026. In South Africa, the last day to trade will be Tuesday 7 April 2026 and the ex-dividend date will be Wednesday 8 April 2026. In the UK, the last day to trade will be Wednesday 8 April 2026 and the ex-dividend date will be Thursday 9 April 2026.
The interim dividend will be paid in British pound sterling ("GBP") to shareholders on the UK register and South African Rand ("Rand") to shareholders on the South African register. The exchange rate for determining the interim dividend paid in Rand will be confirmed by way of an announcement on Tuesday 24 March 2026. UK shareholders are able to make an election to receive dividends in Euro rather than GBP should that be preferred. The form for applying for such election can be obtained from the Company's UK registrars (Equiniti Limited) and any such election must be received by the Company no later than Friday 10 April 2026. The exchange rate for determining the interim dividend paid in GBP will be confirmed following the election cut-off date by way of an announcement on Monday 13 April 2026.
Shares cannot be moved between the South African register and the UK register between Tuesday 24 March 2026 and Friday 10 April 2026, both days inclusive. Shares may not be dematerialised or rematerialised in South Africa between Wednesday 8 April 2026 and Friday 10 April 2026, both days inclusive.
On the date of this announcement, the Company has a total of 131,407,986 shares in issue (excluding treasury shares). The dividend will be distributed by the Company (UK tax registration number 21696 04839) and is regarded as a foreign dividend for shareholders on the South African register. In respect of South African shareholders, dividend tax will be withheld from the amount of the dividend noted above at the rate of 20% unless the shareholder qualifies for the exemption. Further dividend tax information for South African shareholders will be included in the exchange rate announcement to be made on Tuesday 24 March 2026.
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